The Continually Evolving Cost of Shopify
Choosing Shopify as your eCommerce platform may appear straightforward, yet the financial landscape warrants meticulous scrutiny. Initial investments of software services and third party recurring costs can range from lakhs to crores, constituting just the tip of the iceberg. As one delves deeper, additional layers of financial complexity unfold, each contributing to an escalating expenditure profile.
Shopify Apps: Compounding Costs Overtime
Shopify apps can extend your Shopify store's functionality but at a substantial cost. The fee for each app can range from ₹5k to more than ₹1 lac per month per app.
Moreover, many of these apps impose their own transaction fees, typically ranging from 0.5% to 2% per month per app. When you're using multiple apps, these transaction fees can stack up considerably, adding a complicated and often underestimated layer to your ongoing expenses.
Recurring Technical Costs Consuming Revenue
The financial obligations don't cease once your Shopify store goes live; they evolve into a hidden yet recurring drain on your budget. Due to it’s technical nature, merchants opt in for Shopify Annual Maintenance via an agency. Shopify Annual Maintenance providers could easily tack on an additional ₹1 lac to ₹24 lacs per annum. That's not all—Shopify third-party apps (depending on what you install) not only inflate your running costs; they also necessitates a continual investment in specialised technical teams, making your long-term maintenance expenses far more substantial than initially estimated.
The attractiveness of Shopify can often overshadow a complex web of hidden expenses that, when combined—covering Shopify fees, transaction fees, third-party app costs, and app transaction fees and agency/freelancer fees—may cost more than 5% to 12% of your annual website revenue.
Cost Estimate for a Shopify Store in India in 2024
An ecommerce store, with annual revenue of ₹40 lacs, might incur the following approximated costs in their inception year if they choose Shopify and optional third party apps and services:
| Expense Category | Minimum Expense | Maximum Expense |
|---|---|---|
|
Initial Setup Services
If you hire an agency. Optional |
₹5 lacs | ₹40 lacs |
|
Agency maintenance Services
₹8k to ₹2 lac per month. Optional |
₹1 lac | ₹24 lacs |
|
Third-Party App Fee
₹16k to ₹3 lac per month. Optional |
₹2 lacs | ₹36 lacs |
|
Third Party App Commissions
~1% of Revenue. Optional |
₹0.4 lacs | ₹0.4 lacss |
|
Shopify Plan
₹2k - ₹1.5 lac per month |
₹3.6 lacs | ₹3.6 lacs |
|
Shopify Transaction Fee
0.3% - 2.0% of Revenue |
₹0.1 lacs | ₹0.8 lacs |
| Est. Expenditure in Year 1 | ₹12.2 Lacs | ₹1 Crore |
|
This table and all data within this article is compiled based on publicly available information and is intended to provide an estimated breakdown of hypothetical and approximated costs associated with using Shopify and other service providers that may be required by a Shopify customer. Costs can vary depending on various factors, such as individual needs, specific app choices, and vendor contractual agreements. The intent of this presentation is educational and to assist businesses in making informed decisions, not to defame or disparage Shopify |
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How To Reduce eCommerce
Expenses by 50%
Optimise your eCommerce Investment
Meet Hypestore—your ultimate partner for a new era of cost-effective, high-performance online commerce.
Get a Zero Cost Branded eCommerce Setup by Experts when you choose Hypestore
| Expense Category | Shopify | Hypestore |
|---|---|---|
|
Initial Setup Services
If you hire an agency. Optional |
₹5 lacs - ₹40 lacs
One time expense. |
₹ 0 |
The team at Hypestore doesn’t just set up your store; they set up a branded user interface that's uniquely yours. Hypestore takes into account your business objectives and pairs them with eCommerce best practices to build an online environment that resonates with your audience.
Some of example stores built on Hypestore:
Say Goodbye To Third Party App Costs & Dependencies for Growth on Hypestore
| Expense Category | Shopify | Hypestore |
|---|---|---|
|
Third Party App Fee
Growth Apps Included in Hypestore |
₹2 lakhs - ₹36 lakhs
Annual Expense |
₹ 0 |
|
Third Party App Commissions
Included in Hypestore |
0.5% - 2.0% of Revenue
Annual Expense |
₹ 0 |
Unlike Shopify, which relies heavily on third-party apps for business growth, Hypestore offers a suite of native growth tools, engineered to drive your sales and customer engagement organically. These in-built features not only eliminate the need for external apps but also spare you the additional costs, technical complexities and operational dependencies associated with them, providing a seamless and effective growth solution for your brand.
No Code Advantage: Zero Development Costs and Technical Dependencies with Hypestore
| Expense Category | Shopify | Hypestore |
|---|---|---|
|
Agency maintenance Services
Not required with Hypestore |
₹1 lac - ₹24 lacs
Annual Expense |
₹ 0 |
With Hypestore's no-code architecture, say goodbye to the ongoing expenses of hiring agencies or third-party developers. Hypestore is engineered to empower you to build, customize, and scale your online store without ever touching a line of code. The result is not just a reduction in development costs but also a quicker time-to-market, enabling you to focus on what truly matters: growing your business.
Revenue-Based Costing: Designed for Your Growth
| Expense Category | Shopify | Hypestore |
|---|---|---|
|
Software Subscription
Not required with Hypestore |
₹24k - ₹ 18 lacs
Annual Expense |
₹ 0 |
|
Transaction Fee on Revenue
Assuming ₹ 40 lacs revenue |
0.5% - 2% | 2% |
In contrast to Shopify, Hypestore adopts a revenue-based costing model. This ensures that your expenses scale proportionally with your business growth, providing a financially sustainable and transparent pathway for scaling your brand. With Hypestore, you're not just acquiring a service - you're investing in a partnership that grows with you.
“Hypestores ability to translate our vision into a website quickly has been impressive.”
Shruti Kedia
Head Of Marketing, Nasher Miles
Why Choose Hypestore vs. Shopify ?
| Service or Benefit | Shopify | Hypestore |
|---|---|---|
| Zero Cost Branded Setup | ||
| Zero Cost Growth Apps | ||
| Priority technical support on whats app, email and call | ||
| Comprehensive Service | ||
| Tailored for Growth | ||
| No Code, No Hassles | ||
| Store Launch Service | ||
| All Inclusive Pricing | ||
|
By choosing Hypestore, you're not just selecting a platform or a service; you're opting for a hassle-free, cost-effective, and scalable eCommerce solution that positions your business for success right from the get-go. |
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